FTX’s Bankman-Fried hires white collar protection legal professional Mark Cohen By Reuters


© Reuters. FILE PHOTO: The brand of FTX is seen on the entrance of the FTX Enviornment in Miami, Florida, U.S., November 12, 2022. REUTERS/Marco Bello/File Photograph


By Chris Prentice

NEW YORK (Reuters) – FTX founder and former chief govt Sam Bankman-Fried has employed former prosecutor Mark S. Cohen to signify him, as U.S. authorities probe the crypto alternate’s collapse, a spokesperson for Bankman-Fried mentioned on Tuesday.

Regulators across the globe, together with within the Bahamas the place FTX relies and in america, are investigating the position of FTX’s prime executives together with Bankman-Fried within the agency’s beautiful collapse, Reuters has beforehand reported. The crypto alternate filed for chapter final month after a liquidity disaster that noticed a minimum of $1 billion of buyer funds vanish.

Bankman-Fried has retained Cohen, of Cohen & Gresser, Bankman-Fried’s spokesperson Mark Botnick mentioned in an emailed assertion. Cohen couldn’t be reached for remark.

Prosecutors and regulators haven’t charged Bankman-Fried with wrongdoing. He’s dealing with civil lawsuits from traders and FTX prospects.

David Mills, a professor at Stanford Legislation Faculty, is consulting on the matter, Botnick mentioned. Mills didn’t reply to requests for remark. Semafor beforehand reported Mills’ advisory work for Bankman-Fried.

Cohen, a former assistant United States legal professional for the Jap District of New York, just lately defended Ghislaine Maxwell in her intercourse trafficking trial.

Bankman-Fried had beforehand employed Martin Flumenbaum of legislation agency Paul, Weiss, Rifkind, Wharton & Garrison, however the legislation agency mentioned final month it was not representing him as a result of conflicts.

In latest weeks, U.S. authorities have sought info from traders and potential traders in FTX, in line with two sources with information of the requests. Federal prosecutors in New York are asking for particulars on any communications such companies have had with the crypto agency and its executives, together with Bankman-Fried, the sources mentioned. Bloomberg beforehand reported the knowledge requests.

The Securities and Alternate Fee has been asking for related info from traders as nicely, one of many sources mentioned.

These sources and attorneys, talking on situation of anonymity, have mentioned that U.S. authorities are probably on the lookout for any proof of fabric misrepresentations of knowledge to traders.

Spokespeople for the Manhattan U.S. legal professional’s workplace and the SEC declined to touch upon the knowledge request.

FTX secretly transferred buyer funds to its affiliate Alameda Analysis to fill a shortfall on the crypto buying and selling agency, Reuters has beforehand reported.

Talking by way of video hyperlink on the New York Instances’ Dealbook Summit with Andrew Ross Sorkin on Wednesday, Bankman-Fried mentioned he didn’t knowingly commingle buyer funds on FTX with funds at his proprietary buying and selling agency, Alameda Analysis.

“I did not ever attempt to commit fraud,” Bankman-Fried mentioned, including that he would not personally assume he has any legal legal responsibility.

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